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Letter from annual meeting attendee


jnbg

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Board of Directors

Ford Motor Company

July 1, 2005

 

Dear Mr. Chairman and Board of Directors,

 

I was in attendance at the 2005 meeting on May 12th and am NOT the gentleman in yellow wooden shoes. In the discussion of shareholder resolutions, I spoke a couple of times. There were general car comments and suggestions I hoped to share at the end of the meeting. Since I wasn’t able to do that, a letter seems appropriate.

As a lifetime “car-guy†and Ford-guy, not a big financial investor, my trip to the annual meeting was due to that interest and my hopes for the long term health and independence of the company. My trip cost more than my earnings will be this year, but I wanted to come anyway.

In the last few years, you have made much progress in recovering from the neglect of the “Nasser eraâ€. The new products introduced and those coming soon are good news. However, when I see the sales figures each month and speak with friends and co-workers, I am worried that more needs to be done to “get the word out†more effectively. My comments are mainly regarding advertising and marketing. Some of my comments are probably being implemented already, but hopefully the comments of an interested person outside the company will be useful.

 

Please take my “ranting†not as personal criticism , but as someone who gets wound up about seeing things get better for Ford Motor. My thoughts and experiences follow in no particular order.

 

A co-worker was looking at on-line information regarding a Toyota sedan, so I printed out information on Ford & LM models. She said, “Oh, I didn’t think of looking at Ford†I also read a recent business article saying, “Ford was caught flat-footed by the fuel costs because all they have is large gas-guzzling SUV and truck models.â€

You and I know that that is not entirely true but the perception is alarming to me. I feel that you must compare your passenger vehicles head to head against popular Japanese models in your advertising to raise awareness of your vehicles. Compare the features, room, safety, cost, and especially EPA mileage ratings. So often, I hear people assume that the Japanese vehicle in any category is automatically more fuel efficient than the comparable Ford/LM product. You must take every opportunity to work against this perception.

 

Ford 500 & Montego;

I think you have a good new product here but the 500 looks almost identical to Audi models. (This is NOT a compliment). It needs to look more distinctive and not have the same grille shape you are using on all the SUV models. I read this comment frequently on Ford product forums.

However, I am also concerned about the advertising. Yes, I do see quite a bit of advertising, but I only see and hear one basic ad over and over again. The classical music background is trying to convey luxury, but the ad is so hushed and bland that it’s easy to not pay attention. A bit of variety in the type of ad and also comparison to popular Japanese models would help in my opinion.

Focus; Good variety of lively ads but the only mention of mileage is for the model that gets 31mpg hwy. With gas prices being what they are, you should be showing that you have a model rated at 36mpg. Again, compare the car with Asian competitors.

 

Escape Hybrid;

I know that this vehicle has waiting lists of buyers. However, I feel that advertising to show that Ford Motor has hybrid vehicles and other high mileage vehicles is important to the image of the company overall and will help the sales of other vehicles. I have not noticed much advertising in this regard.

Freestyle; I have seen a fair amount of advertising but feel that EPA numbers need to be mentioned and also compare Freestyle head to head with Japanese competitors. Possibly combine in ads with Escape hybrid.

 

F-150;

You need to also compare the F-150 to the Tundra and Titan full size pick-ups. It is also very important to show that they are NOT more fuel efficient than the F-150.

 

SUPPORT AND MARKETING OF EXISTING VEHICLES

 

Ford Motor also has some existing vehicles which seem to get little or no support. Several of these products are profitable vehicles in my understanding. Any company should try to sell all of their products. With sales of almost all products down, don’t spend too much time over-analyzing whether one model might draw sales away from another. It would be better to sell a customer a less profitable Ford Motor vehicle than lose that customer to another manufacturer. A few examples follow.

 

Crown Victoria;

Hopefully you have noticed that new top-end vehicles from Lexus, BMW, Mercedes and others are Rear drive with V-8 engines. It seems to me that there are too many folks at Ford Motor that think such a combination is automatically old fashioned.

 

The Crown Vic printed brochure has phrases including; “Imagine yourself in a classicâ€, “timeless classicâ€, “carries on this heritageâ€. Your internet site says, “after all your hard work, a smooth ride at last†Phrases like this basically say, If you’re a boring old fogey, this could be the car for you! This is awful! It’s not marketing, it’s anti-marketing.

It’s strange that the literature about the Grand Marquis doesn’t talk like this since it is stereotyped as an old folks car along with Buick. Even GM shows young families in their Buick literature.

 

This platform is profitable, has production capacity available, is counted as part of the foreign EPA fleet, has a reputation as a very tough, durable vehicle. Why is there such complete neglect of this product in marketing and engineering support?

How about marketing as ‘something different than a SUV†with better performance and better mileage; or “built Ford-tough†with a young, tough looking policeman getting home from work in his LX Sport. A trailer towing package could offer more a lot more towing capacity than the existing rating. You have had these packages in the past. It could be compared with Dodge Dakota or the Magnum wagon.

 

The LX sport should be a true high performance sedan. It could be what the over-hyped Marauder under-delivered. The appearance is already there, you already have the heavy duty police components, a little work by the SVT group and a 5.4 3-valve V-8 would give you something that would get attention. Since you have developed Independent Rear Suspension for the Expedition and Explorer, IRS would be a real upgrade for all the “panther†cars. It could make the Town car competitive with more of the Domestic and foreign competition.

CrownVic.net is a group of enthusiasts about 7000 strong who are mainly in their 20’s and 30’s. They like the look of de-chromed police models and the LX sport. Handling and performance equipment including superchargers is common fare in this group. Your marketing folks should spend a little time here. It would break down their stereotypes a bit.

 

Finally, I don’t see the 500 and Crown Vic as duplicates but as different complementary vehicles.

 

Lincoln LS;

Here is a fine, highly regarded vehicle which has languished with limited support. A limited edition high performance vehicle would be a real boost. The marketing seems quite tepid and limited compared to Cadillac’s edgy rock-music marketing for CTS which has increased sales and lowered the age demographics of their customers.

 

 

Ranger;

I do congratulate you on advertising Ranger together with the larger Pick-ups in the Home Depot promotion. Until that came along, the Ranger got no marketing at all.

How about “built Ford tough�

With gasoline prices, how about showing Ranger’s EPA ratings?

The Ranger 4-cylinder model has a higher cargo load capacity than the Full-size Nissan Titan V-8. That seems like a good marketing opportunity to me.

 

The Ranger assembly plant workers are getting paid a lot of money to sit home on furloughs, doing nothing.

 

Considering fuel prices, again, you need a competitive vehicle in this market segment so that you don’t lose more market share as trends change. This vehicle is way past due for an update even though it is a good, tough vehicle; ( I have one ).

 

In conclusion, you may be ahead of me on some of these things. If so, you have my compliments. Please remember these comments are from a “car-guy†who wants good things for Ford Motor Company. By the way, I make my living as a mechanical engineer and the first engine I took apart at age 13 was a 1930 Model A 4 cylinder. No, I’m not that old, I just liked vintage cars.

Sincerely,

Jonathan Buesing

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Board of Directors

Ford Motor Company

July 1, 2005

 

Dear Mr. Chairman and Board of Directors,

 

I was in attendance at the 2005 meeting on May 12th and am NOT the gentleman in yellow wooden shoes. In the discussion of shareholder resolutions, I spoke a couple of times. There were general car comments and suggestions I hoped to share at the end of the meeting. Since I wasn’t able to do that, a letter seems appropriate.

As a lifetime “car-guy†and Ford-guy, not a big financial investor, my trip to the annual meeting was due to that interest and my hopes for the long term health and independence of the company. My trip cost more than my earnings will be this year, but I wanted to come anyway.

In the last few years, you have made much progress in recovering from the neglect of the “Nasser eraâ€. The new products introduced and those coming soon are good news. However, when I see the sales figures each month and speak with friends and co-workers, I am worried that more needs to be done to “get the word out†more effectively. My comments are mainly regarding advertising and marketing. Some of my comments are probably being implemented already, but hopefully the comments of an interested person outside the company will be useful.

 

Please take my “ranting†not as personal criticism , but as someone who gets wound up about seeing things get better for Ford Motor. My thoughts and experiences follow in no particular order.

 

A co-worker was looking at on-line information regarding a Toyota sedan, so I printed out information on Ford & LM models. She said, “Oh, I didn’t think of looking at Ford†I also read a recent business article saying, “Ford was caught flat-footed by the fuel costs because all they have is large gas-guzzling SUV and truck models.â€

You and I know that that is not entirely true but the perception is alarming to me. I feel that you must compare your passenger vehicles head to head against popular Japanese models in your advertising to raise awareness of your vehicles. Compare the features, room, safety, cost, and especially EPA mileage ratings. So often, I hear people assume that the Japanese vehicle in any category is automatically more fuel efficient than the comparable Ford/LM product. You must take every opportunity to work against this perception.

 

Ford 500 & Montego;

I think you have a good new product here but the 500 looks almost identical to Audi models. (This is NOT a compliment). It needs to look more distinctive and not have the same grille shape you are using on all the SUV models. I read this comment frequently on Ford product forums.

However, I am also concerned about the advertising. Yes, I do see quite a bit of advertising, but I only see and hear one basic ad over and over again. The classical music background is trying to convey luxury, but the ad is so hushed and bland that it’s easy to not pay attention. A bit of variety in the type of ad and also comparison to popular Japanese models would help in my opinion.

Focus; Good variety of lively ads but the only mention of mileage is for the model that gets 31mpg hwy. With gas prices being what they are, you should be showing that you have a model rated at 36mpg. Again, compare the car with Asian competitors.

 

Escape Hybrid;

I know that this vehicle has waiting lists of buyers. However, I feel that advertising to show that Ford Motor has hybrid vehicles and other high mileage vehicles is important to the image of the company overall and will help the sales of other vehicles. I have not noticed much advertising in this regard.

Freestyle; I have seen a fair amount of advertising but feel that EPA numbers need to be mentioned and also compare Freestyle head to head with Japanese competitors. Possibly combine in ads with Escape hybrid.

 

F-150;

You need to also compare the F-150 to the Tundra and Titan full size pick-ups. It is also very important to show that they are NOT more fuel efficient than the F-150.

 

SUPPORT AND MARKETING OF EXISTING VEHICLES

 

Ford Motor also has some existing vehicles which seem to get little or no support. Several of these products are profitable vehicles in my understanding. Any company should try to sell all of their products. With sales of almost all products down, don’t spend too much time over-analyzing whether one model might draw sales away from another. It would be better to sell a customer a less profitable Ford Motor vehicle than lose that customer to another manufacturer. A few examples follow.

 

Crown Victoria;

Hopefully you have noticed that new top-end vehicles from Lexus, BMW, Mercedes and others are Rear drive with V-8 engines. It seems to me that there are too many folks at Ford Motor that think such a combination is automatically old fashioned.

 

The Crown Vic printed brochure has phrases including; “Imagine yourself in a classicâ€, “timeless classicâ€, “carries on this heritageâ€. Your internet site says, “after all your hard work, a smooth ride at last†Phrases like this basically say, If you’re a boring old fogey, this could be the car for you! This is awful! It’s not marketing, it’s anti-marketing.

It’s strange that the literature about the Grand Marquis doesn’t talk like this since it is stereotyped as an old folks car along with Buick. Even GM shows young families in their Buick literature.

 

This platform is profitable, has production capacity available, is counted as part of the foreign EPA fleet, has a reputation as a very tough, durable vehicle. Why is there such complete neglect of this product in marketing and engineering support?

How about marketing as ‘something different than a SUV†with better performance and better mileage; or “built Ford-tough†with a young, tough looking policeman getting home from work in his LX Sport. A trailer towing package could offer more a lot more towing capacity than the existing rating. You have had these packages in the past. It could be compared with Dodge Dakota or the Magnum wagon.

 

The LX sport should be a true high performance sedan. It could be what the over-hyped Marauder under-delivered. The appearance is already there, you already have the heavy duty police components, a little work by the SVT group and a 5.4 3-valve V-8 would give you something that would get attention. Since you have developed Independent Rear Suspension for the Expedition and Explorer, IRS would be a real upgrade for all the “panther†cars. It could make the Town car competitive with more of the Domestic and foreign competition.

CrownVic.net is a group of enthusiasts about 7000 strong who are mainly in their 20’s and 30’s. They like the look of de-chromed police models and the LX sport. Handling and performance equipment including superchargers is common fare in this group. Your marketing folks should spend a little time here. It would break down their stereotypes a bit.

 

Finally, I don’t see the 500 and Crown Vic as duplicates but as different complementary vehicles.

 

Lincoln LS;

Here is a fine, highly regarded vehicle which has languished with limited support. A limited edition high performance vehicle would be a real boost. The marketing seems quite tepid and limited compared to Cadillac’s edgy rock-music marketing for CTS which has increased sales and lowered the age demographics of their customers.

Ranger;

I do congratulate you on advertising Ranger together with the larger Pick-ups in the Home Depot promotion. Until that came along, the Ranger got no marketing at all.

How about “built Ford tough�

With gasoline prices, how about showing Ranger’s EPA ratings?

The Ranger 4-cylinder model has a higher cargo load capacity than the Full-size Nissan Titan V-8. That seems like a good marketing opportunity to me.

 

The Ranger assembly plant workers are getting paid a lot of money to sit home on furloughs, doing nothing.

 

Considering fuel prices, again, you need a competitive vehicle in this market segment so that you don’t lose more market share as trends change. This vehicle is way past due for an update even though it is a good, tough vehicle; ( I have one ).

 

In conclusion, you may be ahead of me on some of these things. If so, you have my compliments. Please remember these comments are from a “car-guy†who wants good things for Ford Motor Company. By the way, I make my living as a mechanical engineer and the first engine I took apart at age 13 was a 1930 Model A 4 cylinder. No, I’m not that old, I just liked vintage cars.

Sincerely,

Jonathan Buesing

 

I agree completely. Are you sure you don't want some new headlights? How can you see at night?

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Damn, you're dead on about the Crown Victoria. It's the best car ever made and yet the most under appreciated both at the same time. All it needs is some sprucing and a change of attitude and it would be a very popular model. You even mentioned Crown Vic.net! Now that's informative!

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You want bad headlights? Try a full size GMC van. I have to drive one at work, in the dark :angry: :( .

Tell that to the guy in Yellow wooden shoes. He is desperate to sell Ford his fantastic headlights

because we all know when you buy a Ford, the first thing you do is buy new headlights for it.

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Tell that to the guy in Yellow wooden shoes. He is desperate to sell Ford his fantastic headlights

because we all know when you buy a Ford, the first thing you do is buy new headlights for it.

 

Humph, And I sit here and think the headlgihts in my Ford products work great. Well, Im not sure how the headlights are in the 65 Galaxie yet though, But they work! :lol:

I guess I see better then others? :blink:

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